EX-99.1 6 amgp-20190930ex9910e2bbd.htm EX-99.1 amgp_EX99_1

EXHIBIT 99.1

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS 

Set forth below are the unaudited pro forma condensed combined statements of operations and comprehensive income of Antero Midstream Corporation for the three and nine months ended September 30, 2018 and 2019. The unaudited pro forma condensed combined financial statements for the three and nine months ended September 30, 2018 have been derived from (i) the unaudited condensed consolidated financial statements of Antero Midstream GP LP (“AMGP”) for the three and nine months ended September 30, 2018 and (ii) the unaudited condensed consolidated financial statements of Antero Midstream Partners LP (“Antero Midstream Partners”) for the three and nine months ended September 30, 2018, adjusted to reflect the acquisition of Antero Midstream Partners by AMGP.  The unaudited pro forma condensed combined financial statements for the three and nine months ended September 30, 2019 have been derived from (i) the unaudited condensed consolidated financial statements of Antero Midstream Corporation for the three and nine months ended September 30, 2019 and (ii) the unaudited condensed consolidated financial information of Antero Midstream Partners for the period from January 1, 2019 through March 12, 2019, adjusted to reflect the acquisition of Antero Midstream Partners by AMGP.

On March 12, 2019, pursuant to that certain Simplification Agreement, dated October 9, 2018 (the “Simplification Agreement”), (i) AMGP converted from a limited partnership to a corporation under the laws of the State of Delaware (the “Conversion”) and changed its name to Antero Midstream Corporation, (ii) a wholly owned subsidiary of Antero Midstream Corporation  merged with and into Antero Midstream Partners, with Antero Midstream Partners surviving such merger as an indirect, wholly owned subsidiary of Antero Midstream Corporation (the “Merger”) and (iii) Antero Midstream Corporation exchanged each issued and outstanding Series B Unit (each, a “Series B Unit”) representing a membership interest in Antero IDR Holdings LLC (“IDR Holdings”) for 176.0041 shares of Antero Midstream Corporation common stock (the “Series B Exchange” and, together with the Conversion, the Merger and the other transactions contemplated by the Simplification Agreement, the “Transactions”).  As a result of the Transactions, Antero Midstream Partners is now a wholly owned subsidiary of Antero Midstream Corporation and former shareholders of AMGP, unitholders of Antero Midstream Partners, including Antero Resources Corporation (“Antero Resources”), and holders of Series B Units now own Antero Midstream Corporation’s common stock (“Antero Midstream Corporation Common Stock”).  

As discussed further in the notes to the unaudited pro forma condensed combined financial statements, the Transactions include:

·

the issuance by Antero Midstream Corporation of one share of Antero Midstream Corporation Common Stock for each outstanding common share representing limited partner interests in AMGP (each, an “AMGP Common Share”) outstanding immediately prior to the Conversion; 

·

the issuance by Antero Midstream Corporation of 10,000 shares of Series A Non-Voting Perpetual Preferred Stock of Antero Midstream Corporation (the “Antero Midstream Corporation Preferred Stock”) to Antero Midstream Preferred Co LLC, a wholly owned subsidiary of AMGP (“Preferred Co”), for consideration of $0.01 per share; 

·

the issuance by Antero Midstream Corporation of approximately 158.4 million shares of Antero Midstream Corporation Common Stock in exchange for all the common units representing limited partner interests in Antero Midstream Partners (the “Antero Midstream Common Units”) held by Antero Resources, based on the $3.00 in cash and 1.6023 shares of Antero Midstream Corporation Common Stock for each Antero Midstream Common Unit held that Antero Resources received; 

·

the issuance by Antero Midstream Corporation of approximately 144.6 million shares of Antero Midstream Corporation Common Stock in exchange for all Antero Midstream Common Units held by the unitholders of Antero Midstream Partners other than Antero Resources (the “Antero Midstream Public Unitholders”), based on the $3.415 in cash and 1.6350 shares of New AM Common Stock for each Antero Midstream Common Unit held that Antero Midstream Public Unitholders received; 

·

the issuance by Antero Midstream Corporation of approximately 17.35 million shares of New AM Common Stock in exchange for all Series B Units in the Series B Exchange; 

·

the payment of cash consideration of approximately $599 million from borrowings under Antero Midstream Partners' revolving credit facility; and 

·

the elimination of the burden of Antero Midstream Partners’ incentive distribution rights.

No effect was given to the conversion of phantom unit awards outstanding under Antero Midstream Partners’ long-term incentive plan, which awards were converted into restricted stock units of Antero Midstream Corporation, with substantially the same

terms and conditions (including with respect to vesting) applicable to such Antero Midstream Partners phantom unit award. The issuance of Antero Midstream Corporation Common Stock for unvested Series B Units will result in an additional charge to equity-based compensation expense from the date of the completion of the Transactions through December 31, 2019. The increase in value was calculated based on the value of the Antero Midstream Corporation Common Stock transferred for the Series B Units relative to the value of the Series B Units immediately prior to the Series B Exchange.  Based on the value of the Series B Units, and assuming a value of the Antero Midstream Corporation Common Stock based on the closing sales price of the AMGP Common Shares at March 12, 2019, the additional charge is approximately $31 million, which will be amortized over the remainder of 2019. 

AMGP was the sole member of Antero Midstream Partners GP LLC, the general partner of Antero Midstream Partners, and also controlled the incentive distribution rights in Antero Midstream Partners through its ownership interest in IDR Holdings (subject to the rights of the holders of Series B Units to receive distributions in respect of their Series B Units). As a result of the Merger, Antero Midstream Partners became an indirect, wholly owned subsidiary of Antero Midstream Corporation, and former Antero Midstream Partners unitholders now collectively own a majority of the outstanding Antero Midstream Corporation Common Stock. The unaudited pro forma condensed combined financial statements should be read in conjunction with the unaudited consolidated financial statements and related notes included in AMGP’s and Antero Midstream Partners' respective Quarterly Reports on Form 10-Q for the three and nine months ended September 30, 2018 as well as Antero Midstream Corporation’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2019, each as filed with the Securities and Exchange Commission.

The unaudited pro forma condensed combined financial statements were prepared as if the Transactions had occurred as of January 1, 2018.  We derived the following unaudited pro forma condensed combined financial statements by applying pro forma adjustments to the historical unaudited consolidated financial statements of AMGP for the three and nine months ended September 30, 2018 and to the unaudited consolidated financial statements of Antero Midstream Corporation for the three and nine months ended September 30, 2019. The Transactions have been accounted for as a business combination under ASC 805,  Business Combinations.   

The pro forma adjustments are based upon currently available information and certain estimates and assumptions; therefore, actual results may differ from the pro forma adjustments. We believe, however, that the assumptions provide a reasonable basis for presenting the significant effects of the Transactions and are factually supportable, directly attributable and are expected to have a continuing impact on Antero Midstream Corporation’s profit and loss and that the pro forma adjustments give appropriate effect to management's assumptions and are properly applied in the unaudited pro forma condensed combined financial statements. The notes to the unaudited pro forma condensed combined financial statements provide a detailed discussion of how such adjustments were derived and presented in the unaudited pro forma condensed combined financial statements.

The unaudited pro forma condensed combined financial statements are presented for informational purposes only. The unaudited pro forma condensed combined financial statements do not purport to represent what the results of operations or financial condition would have been had the transactions to which the pro forma adjustments relate actually occurred on the dates indicated and they do not purport to project the results of operations or financial condition for any future period or as of any future date. 

 

 

 

ANTERO MIDSTREAM CORPORATION

Unaudited Pro Forma Condensed Combined Statement of Operations and Comprehensive Income

For the Three Months Ended September 30, 2018

(In thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro Forma

 

 

 

Antero

 

Antero

 

 

 

 

Antero

 

 

 

Midstream

 

Midstream

 

Pro Forma

 

Midstream

 

 

 

GP LP

 

Partners LP

 

Adjustments

 

Corporation

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of Antero Midstream Partners LP

 

$

37,816

 

 

 —

 

 

(37,816)

(a)

 

 —

 

Gathering and compression–Antero Resources

 

 

 —

 

 

133,202

 

 

 —

 

 

133,202

 

Water handling and treatment–Antero Resources

 

 

 —

 

 

132,898

 

 

 —

 

 

132,898

 

Water handling and treatment–third party

 

 

 —

 

 

105

 

 

 —

 

 

105

 

Amortization of customer relationships

 

 

 —

 

 

 —

 

 

(17,843)

(b)

 

(17,843)

 

Total revenues

 

 

37,816

 

 

266,205

 

 

(55,659)

 

 

248,362

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating

 

 

 —

 

 

81,475

 

 

 —

 

 

81,475

 

General and administrative (excluding equity-based compensation)

 

 

2,229

 

 

10,490

 

 

 —

 

 

12,719

 

Equity-based compensation

 

 

8,574

 

 

4,528

 

 

 —

 

 

13,102

 

Impairment of property and equipment

 

 

 —

 

 

1,157

 

 

 —

 

 

1,157

 

Depreciation

 

 

 —

 

 

38,456

 

 

3,934

(c)

 

42,390

 

Accretion and change in fair value of contingent acquisition consideration

 

 

 —

 

 

4,020

 

 

 —

 

 

4,020

 

Accretion of asset retirement obligations

 

 

 —

 

 

33

 

 

 —

 

 

33

 

Total operating expenses

 

 

10,803

 

 

140,159

 

 

3,934

 

 

154,896

 

Operating income

 

 

27,013

 

 

126,046

 

 

(59,593)

 

 

93,466

 

Other income (expenses)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(68)

 

 

(16,988)

 

 

(5,437)

(d)

 

(22,493)

 

Equity in earnings of unconsolidated affiliates

 

 

 —

 

 

10,706

 

 

(1,471)

(e)

 

9,235

 

Income before income taxes

 

 

26,945

 

 

119,764

 

 

(66,501)

 

 

80,208

 

Provision for income taxes (expense) benefit:

 

 

 

 

 

 

 

 

 

 

 

 

 

   Current

 

 

(8,917)

 

 

 —

 

 

8,917

(f)

 

 —

 

   Deferred

 

 

 —

 

 

 —

 

 

(22,233)

(f)

 

(22,233)

 

     Total income taxes

 

 

(8,917)

 

 

 —

 

 

(13,316)

 

 

(22,233)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to incentive distribution rights

 

 

 —

 

 

(37,816)

 

 

37,816

(g)

 

 —

 

Net income and comprehensive income

 

 

18,028

 

 

81,948

 

 

(42,001)

 

 

57,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to vested Series B units

 

 

(598)

 

 

 —

 

 

598

(h)

 

 —

 

Net income attributable to common shareholders or unitholders

 

$

17,430

 

 

81,948

 

 

(41,403)

 

 

57,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share or unit–basic

 

$

0.09

 

 

0.44

 

 

 

 

 

0.12

 

Net income per common share or unit–diluted

 

$

0.09

 

 

0.44

 

 

 

 

 

0.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares or units outstanding–basic

 

 

186,208

 

 

187,044

 

 

314,635

(i)

 

500,843

 

Weighted average number of common shares or units outstanding–diluted

 

 

186,208

 

 

187,502

 

 

321,524

(i)

 

507,732

 

 

 

See accompanying notes to the unaudited pro forma condensed combined financial statements.

 

ANTERO MIDSTREAM CORPORATION

Unaudited Pro Forma Condensed Combined Statement of Operations and Comprehensive Income

For the Three Months Ended September 30, 2019

(In thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro Forma

 

 

 

Antero

 

Antero

 

 

 

 

Antero

 

 

 

Midstream

 

Midstream

 

Pro Forma

 

Midstream

 

 

 

Corporation

 

Partners LP

 

Adjustments

 

Corporation

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of Antero Midstream Partners LP

 

$

 —

 

 

 —

 

 

 —

 

 

 —

 

Gathering and compression–Antero Resources

 

 

175,719

 

 

 —

 

 

 —

 

 

175,719

 

Water handling and treatment–Antero Resources

 

 

96,939

 

 

 —

 

 

 —

 

 

96,939

 

Amortization of customer relationships

 

 

(28,863)

 

 

 —

 

 

 —

 

 

(28,863)

 

Total revenues

 

 

243,795

 

 

 —

 

 

 —

 

 

243,795

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating

 

 

61,808

 

 

 —

 

 

 —

 

 

61,808

 

General and administrative (excluding equity-based compensation)

 

 

10,466

 

 

 —

 

 

 —

 

 

10,466

 

Facility idling

 

 

1,512

 

 

 —

 

 

 —

 

 

1,512

 

Equity-based compensation

 

 

20,129

 

 

 —

 

 

 —

 

 

20,129

 

Impairment of property and equipment

 

 

407,848

 

 

 —

 

 

 —

 

 

407,848

 

Impairment of goodwill

 

 

43,759

 

 

 —

 

 

 —

 

 

43,759

 

Impairment of customer relationships

 

 

5,871

 

 

 —

 

 

 —

 

 

5,871

 

Depreciation

 

 

24,460

 

 

 —

 

 

 —

 

 

24,460

 

Accretion and change in fair value of contingent acquisition consideration

 

 

1,977

 

 

 —

 

 

 —

 

 

1,977

 

Accretion of asset retirement obligations

 

 

54

 

 

 —

 

 

 —

 

 

54

 

Total operating expenses

 

 

577,884

 

 

 —

 

 

 —

 

 

577,884

 

Operating loss

 

 

(334,089)

 

 

 —

 

 

 —

 

 

(334,089)

 

Other income (expenses)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(36,134)

 

 

 —

 

 

 —

 

 

(36,134)

 

Equity in earnings of unconsolidated affiliates

 

 

18,478

 

 

 —

 

 

 —

 

 

18,478

 

Loss before income taxes

 

 

(351,745)

 

 

 —

 

 

 —

 

 

(351,745)

 

Provision for income taxes benefit:

 

 

 

 

 

 

 

 

 

 

 

 

 

   Current

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

   Deferred

 

 

62,268

 

 

 —

 

 

 —

 

 

62,268

 

     Total income taxes

 

 

62,268

 

 

 —

 

 

 —

 

 

62,268

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to incentive distribution rights

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

Net loss and comprehensive loss

 

 

(289,477)

 

 

 —

 

 

 —

 

 

(289,477)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to vested Series B units

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

Net loss attributable to common shareholders or unitholders

 

$

(289,477)

 

 

 —

 

 

 —

 

 

(289,477)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share or unit–basic

 

$

(0.57)

 

 

 

 

 

 

 

 

(0.57)

 

Net loss per common share or unit–diluted

 

$

(0.57)

 

 

 

 

 

 

 

 

(0.57)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares or units outstanding–basic

 

 

506,419

 

 

 

 

 

 —

 

 

506,419

 

Weighted average number of common shares or units outstanding–diluted

 

 

506,419

 

 

 

 

 

 —

 

 

506,419

 

 

 

See accompanying notes to the unaudited pro forma condensed combined financial statements.

 

ANTERO MIDSTREAM CORPORATION

Unaudited Pro Forma Condensed Combined Statement of Operations and Comprehensive Income

For the Nine months Ended September 30, 2018

(In thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro Forma

 

 

 

Antero

 

Antero

 

 

 

 

Antero

 

 

 

Midstream

 

Midstream

 

Pro Forma

 

Midstream

 

 

 

GP LP

 

Partners LP

 

Adjustments

 

Corporation

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of Antero Midstream Partners LP

 

$

99,414

 

 

 —

 

 

(99,414)

(a)

 

 —

 

Gathering and compression–Antero Resources

 

 

 —

 

 

359,515

 

 

 —

 

 

359,515

 

Water handling and treatment–Antero Resources

 

 

 —

 

 

386,018

 

 

 —

 

 

386,018

 

Water handling and treatment–third party

 

 

 —

 

 

655

 

 

 —

 

 

655

 

Gain on sale of assets–Antero Resources

 

 

 —

 

 

583

 

 

 —

 

 

583

 

Amortization of customer relationships

 

 

 —

 

 

 —

 

 

(52,949)

(b)

 

(52,949)

 

Total revenues

 

 

99,414

 

 

746,771

 

 

(152,363)

 

 

693,822

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating

 

 

 —

 

 

224,354

 

 

 —

 

 

224,354

 

General and administrative (excluding equity-based compensation)

 

 

5,557

 

 

28,361

 

 

 —

 

 

33,918

 

Equity-based compensation

 

 

26,319

 

 

16,606

 

 

 —

 

 

42,925

 

Impairment of property and equipment

 

 

 —

 

 

5,771

 

 

 —

 

 

5,771

 

Depreciation

 

 

 —

 

 

107,321

 

 

11,801

(c)

 

119,122

 

Accretion and change in fair value of contingent acquisition consideration

 

 

 —

 

 

11,841

 

 

 —

 

 

11,841

 

Accretion of asset retirement obligations

 

 

 —

 

 

101

 

 

 —

 

 

101

 

Total operating expenses

 

 

31,876

 

 

394,355

 

 

11,801

 

 

438,032

 

Operating income

 

 

67,538

 

 

352,416

 

 

(164,164)

 

 

255,790

 

Other income (expenses)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(82)

 

 

(42,913)

 

 

(16,316)

(d)

 

(59,311)

 

Equity in earnings of unconsolidated affiliates

 

 

 —

 

 

27,832

 

 

(4,365)

(e)

 

23,467

 

Income before income taxes

 

 

67,456

 

 

337,335

 

 

(184,845)

 

 

219,946

 

Provision for income taxes (expense) benefit:

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

(22,236)

 

 

 —

 

 

22,236

(f)

 

 —

 

Deferred

 

 

 —

 

 

 —

 

 

(60,359)

(f)

 

(60,359)

 

Total income taxes

 

 

(22,236)

 

 

 —

 

 

(38,123)

 

 

(60,359)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to incentive distribution rights

 

 

 —

 

 

(99,414)

 

 

99,414

(g)

 

 —

 

Net income and comprehensive income

 

 

45,220

 

 

237,921

 

 

(123,554)

 

 

159,587

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to vested Series B units

 

 

(1,517)

 

 

 —

 

 

1,517

(h)

 

 —

 

Net income attributable to common shareholders or unitholders

 

$

43,703

 

 

237,921

 

 

(122,037)

 

 

159,587

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share or unit–basic

 

$

0.23

 

 

1.27

 

 

 

 

 

0.32

 

Net income per common share or unit–diluted

 

$

0.23

 

 

1.27

 

 

 

 

 

0.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares or units outstanding–basic

 

 

186,199

 

 

186,999

 

 

314,644

(i)

 

500,843

 

Weighted average number of common shares or units outstanding–diluted

 

 

186,199

 

 

187,342

 

 

321,533

(i)

 

507,732

 

 

 

See accompanying notes to the unaudited pro forma condensed combined financial statements.

 

ANTERO MIDSTREAM CORPORATION

Unaudited Pro Forma Condensed Combined Statement of Operations and Comprehensive Income

For the Nine months Ended September 30, 2019

(In thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro Forma

 

 

 

Antero

 

Antero

 

 

 

 

Antero

 

 

 

Midstream

 

Midstream

 

Pro Forma

 

Midstream

 

 

 

Corporation

 

Partners LP (k)

 

Adjustments

 

Corporation

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of Antero Midstream Partners LP

 

$

 —

 

 

 —

 

 

 —

(a)

 

 —

 

Gathering and compression–Antero Resources

 

 

378,178

 

 

124,773

 

 

 —

 

 

502,951

 

Water handling and treatment–Antero Resources

 

 

214,471

 

 

93,537

 

 

 —

 

 

308,008

 

Water handling and treatment–third party

 

 

50

 

 

51

 

 

 —

 

 

101

 

Amortization of customer relationships

 

 

(39,178)

 

 

 —

 

 

(13,771)

(b)

 

(52,949)

 

Total revenues

 

 

553,521

 

 

218,361

 

 

(13,771)

 

 

758,111

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct operating

 

 

140,788

 

 

64,818

 

 

 —

 

 

205,606

 

General and administrative (excluding equity-based compensation)

 

 

31,931

 

 

16,316

 

 

(15,345)

(j)

 

32,902

 

Facility idling

 

 

1,512

 

 

 —

 

 

 —

 

 

1,512

 

Equity-based compensation

 

 

53,095

 

 

2,477

 

 

 —

 

 

55,572

 

Impairment of property and equipment

 

 

408,442

 

 

6,982

 

 

 —

 

 

415,424

 

Impairment of goodwill

 

 

43,759

 

 

 —

 

 

 —

 

 

43,759

 

Impairment of customer relationships

 

 

5,871

 

 

 —

 

 

 —

 

 

5,871

 

Depreciation

 

 

68,557

 

 

21,707

 

 

3,130

(c)

 

93,394

 

Accretion and change in fair value of contingent acquisition consideration

 

 

5,323

 

 

1,928

 

 

 —

 

 

7,251

 

Accretion of asset retirement obligations

 

 

133

 

 

63

 

 

 —

 

 

196

 

Total operating expenses

 

 

759,411

 

 

114,291

 

 

(12,215)

 

 

861,487

 

Operating income (loss)

 

 

(205,890)

 

 

104,070

 

 

(1,556)

 

 

(103,376)

 

Other income (expenses)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(73,872)

 

 

(16,815)

 

 

(3,301)

(d)

 

(93,988)

 

Equity in earnings of unconsolidated affiliates

 

 

34,981

 

 

12,264

 

 

(1,151)

(e)

 

46,094

 

Income (loss) before income taxes

 

 

(244,781)

 

 

99,519

 

 

(6,008)

 

 

(151,270)

 

Provision for income taxes (expense) benefit:

 

 

 

 

 

 

 

 

 

 

 

 

 

   Current

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

   Deferred

 

 

34,226

 

 

 —

 

 

(23,378)

(f)

 

10,848

 

     Total income taxes

 

 

34,226

 

 

 —

 

 

(23,378)

 

 

10,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to incentive distribution rights

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

Net income (loss) and comprehensive income (loss)

 

 

(210,555)

 

 

99,519

 

 

(29,386)

 

 

(140,422)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to vested Series B units

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

Net loss attributable to common shareholders or unitholders

 

$

(210,555)

 

 

99,519

 

 

(29,386)

 

 

(140,422)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share or unit–basic

 

$

(0.50)

 

 

 

 

 

 

 

 

(0.28)

 

Net loss per common share or unit–diluted

 

$

(0.50)

 

 

 

 

 

 

 

 

(0.28)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares or units outstanding–basic

 

 

423,296

 

 

 

 

 

83,123

(i)

 

506,419

 

Weighted average number of common shares or units outstanding–diluted

 

 

423,296

 

 

 

 

 

83,123

(i)

 

506,419

 

 

See accompanying notes to the unaudited pro forma condensed combined financial statements.

 

ANTERO MIDSTREAM CORPORATION

Notes to the Unaudited Pro Forma Condensed Combined Financial Statements

 

(1)  Basis of Presentation 

The unaudited pro forma condensed combined financial statements were prepared as if the Transactions had occurred as of January 1, 2018.  The Transactions have been accounted for as an acquisition by AMGP of Antero Midstream Partners under ASC 805, Business Combinations, and accounted for as a business combination, with the assumed assets and liabilities of Antero Midstream Partners recorded at fair value.  Dividends related to the Series A Non-Voting Preferred Stock are considered to be de minimis to the net income per common share calculations and, therefore, are not reflected in the pro forma adjustments.

(2)  Pro Forma Adjustments and Assumptions 

(a)